Oil prices were mixed during Asian trade on Friday but remained on track for a third consecutive weekly gain, as hostilities between Israel and Iran remained in focus amid fears over supply disruptions.
At 2:50 pm AEST (4:50 am GMT) Brent crude futures fell $1.69 or 2.1% to US$77.16 per barrel, though still posting a 3.9% weekly gain.
U.S. West Texas Intermediate (WTI) crude for August climbed $0.43 or 0.6% to $73.93 per barrel, up 1.3% for the week.
The price surge earlier in the week followed a sharp escalation in military action, with Israel bombing Iranian nuclear facilities and Iran launching missiles and drones after an Israeli hospital was hit.
Iran, the third-largest OPEC producer, currently extracts around 3.3 million barrels of oil per day.
"Satellite images also show that Iran is racing to get its oil out, filling storage tanks and sending as much onto the global market as it can," ANZ analysts noted.
"Israel’s attack on Iran has reminded the oil market that geopolitical risks should not be ignored."
There is no sign of de-escalation, with Israeli Prime Minister Benjamin Netanyahu warning that Tehran would "pay the full price", while Iran threatened retaliation if a "third party" joined the conflict.
The White House confirmed President Donald Trump would decide within two weeks whether the U.S. will intervene.
